Is Tesla Finally Profitable?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Ericsson (ERIC) +11.8%
Pinterest (PINS) +9.0%
Twitter (TWTR) +8.4%
PayPal (PYPL) +5.5%
Facebook (FB) +4.2%
Moving Down ⬇️
iRobot (IRBT) -13.0%
Trupanion (TRUP) -8.7%
Etsy (ETSY) -8.1%
Netflix (NFLX) -6.9%
1. It’s April 2019, there’s no pandemic, and Tesla Motors (TSLA) has just reported another unprofitable quarter while being valued at roughly $48 billion. Fast-forward five profitable quarters, one pandemic, 720% valuation growth, and no S&P 500 (VOO) membership later, and Tesla has just reported record revenue of $8.77 billion and earnings per share (EPS) of $0.76, or net income (GAAP) of $331 million. The company already reported record deliveries of 139,300 vehicles during the quarter, but operating expenses soared 33% to $1.25 billion as Tesla begins building new factories in Germany and Texas. CFO Zachary Kirkhorn reiterated on Wednesday’s call that Tesla is still aiming for 500,000 deliveries in 2020. Read the official press release here.
2. The Justice Department’s recent antitrust lawsuit against Google (GOOG) may have very serious implications for fellow Big Tech giant Apple (AAPL). The DOJ cited “public estimates” to claim that the iPhone-maker collects between $8 billion and $12 billion in payments from Google — for having the search-engine as its smartphones’ default browser — representing between 17% and 26% of Apple’s total services revenue. Even though the latest iPhone 12 series looks to be a real winner, the DOJ could scupper Apple’s services growth should they force changes in policy that prevent the two tech giants from working so closely together. For a full read-up on this interesting case, click here.
3. Delight for many, a groan of “oh no, not you too” for others; PayPal’s (PYPL) gone and announced plans to allow customers buy cryptocurrency through their accounts, sending its stock to all-time highs on Wednesday. The payment solutions leader jumped 5.5% to $213.07 per share after stating that “consumers will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees,”. The service will start sometime next year, with PayPal disclosing that it had obtained a conditional Bitlicense from the New York State Department of Financial Services. PayPal stock is currently up 92% year-to-date. Read the full story here.
Find more earnings from last night here:
Align Technology (ALGN)
The maker of the Invisalign tooth-straightening system beat Q3 estimates with revenue of $734.1 million along with an adjusted EPS of $2.25. President and CEO Joe Hogan said, “I’m pleased to report stronger than expected results with record third-quarter revenues up 21% year-over-year reflecting strong momentum across all regions. Read the official report here.
Chipotle Mexican Grill (CMG)
Chipotle sales rose 14.1% in its third-quarter to $1.6 billion, with EPS of $3.76, adjusted, surpassing analyst estimates. Despite rising pandemic-related costs, digital sales more than tripled for the second consecutive quarter and could exceed $2.5 billion in 2020, according to CEO Brian Niccol. Read the official report here.
The Swedish telecom giant beat estimates with a net income of 9 billion Swedish crowns ($1 billion), up from 6.5 billion a year ago and a 1% increase in total revenue to 57.5 billion crowns. "While the pandemic has hurt revenues for several of our customers, we have not seen any negative impact on our business," chief executive Borje Ekholm said in a statement. Read the official report here.
There are 3 companies in the MyWallSt shortlist that will report earnings today. Get this week’s full calendar here.